Keys to bitcoin safety using a bitcoin tumbler
If you’re in cryptocurrency at this early stage in the development of the market, then it is safe to say that you’re early. With the total market capitalization at only a fraction of the Nasdaq or Dow Jones markets, crypto has a long, long way to go.
Now, wouldn’t be a shame to be this early in crypto and somehow lose it all? Yes, it most definitely would be, but it can easily happen if you don’t use a bitcoin mixer to protect your BTC holdings.
Essentially, a bitcoin tumbler is a way to anonymize yourself on the blockchain so that even if a passerby sees your wallet, there are no connections they can make to it, therefore making it impossible to identify you.
The importance of becoming invisible in this way on the bitcoin blockchain simply can not be overstated. Bad actors litter the cryptosphere like cigarette butts in the street – they are everywhere, nobody likes them, but they are a fact of reality.
Who are these bad actors, and what do they want from you? Well, in a word, they want your BTC – and they will take it by any means necessary.
Therefore, it is up to you to protect your wealth by any means necessary as well. Luckily, using a bitcoin mixer is a frontline tool in the fight against hackers, cyber-criminals, blockchain analytics firms spying on your wallet.
Blockchain analysis is getting very powerful
Back in the day, you didn’t have to worry much about people snooping on your bitcoin wallet. Even if they saw your wealth, there wasn’t much they could do with the data.
Times have changed. Recent advances in blockchain analytics mean firms such as Chainalysis have powerful ways of gathering intelligence to determine who you are, and what you own on the blockchain. They feed this data over to the highest paying customer.
As nations brace for the true effects of cryptocurrency’s influence to be felt, they are preparing strict protocols for back taxing anyone involved in the digital asset sphere since Satoshi Nakamoto set bitcoin loose back in 2009. That means you may be held liable for everything you’ve ever done on the blockchain in a financial way – whether you like it or not.
Additionally, blockchain analysis firms are working at the behest of private organizations who are collecting blockchain data in the hopes of monetizing it one day. At this early stage, it is impossible to say what uses all of today’s blockchain data will serve in the near future. But, you probably don’t want to let your data be part of the process - just to be on the safe side.
Finally, malicious hackers are out there to empty your wallet. They also use blockchain analysis techniques and are the original innovators of many of the methods now legitimized by analysis startups.
Remember cryptocurrency influencer Ian Balina? In 2017, he was hacked for over $1 million worth of crypto which was never recovered. That was all with using some of the highest standards in crypto security. If they can get to Balina, they can get to you.
BUT – there is one thing he didn’t do – he didn’t use a bitcoin tumbler to anonymize his holdings. Instead, his wealth was very public, which turned out to be a huge mistake. If you choose to mix your bitcoin using a tumbler, however, you won’t fall into the same trap that he did.
Bitcoin tumbler hides your wealth
Simply put, a bitcoin tumbler breaks the link between your old wallet address, and a new wallet address which you’ll use after mixing.
The process is really, really simple:
- Head to a reputable tumbler startup like Tumbler.io
- Designate your new BTC address (where your anonymized BTC will be sent to)
- Receive one-time use BTC deposit address, send within 24 hours
- After a few confirmations, receive mixed BTC to your new address
That’s it! Now, even if someone happens upon your wallet address, there will be no connection linking it to your old wallet and all of the previously associated transaction history.
Think of it as hiding in plain sight. Even though the blockchain is still public, there is nothing a passerby can make out of the information present in your new wallet.
However, to make the most of it, you will have to use a bitcoin mixer anytime you receive coins from a new source.
Let’s say you’re a freelancer who accepts payments in BTC. Every time a client pays you, you’ll need to head back to Tumbler.io and anonymize your coins. Once done, you can safely use your new BTC just as you would ordinarily.
The same goes for buying bitcoin using Binance, Coinbase, Gemini, Huobi, or any of the other industry standard exchanges. They’re great places for buying bitcoin, but since you do so with all of your identity information attached from the moment you do KYC, your subsequent transactions from the exchange wallet all point to your real identity.
So, instead of continuing to paint a target on your back, take control of the situation by mixing your coins properly every time you receive them from an untrustworthy source.
And by untrustworthy source, that means anywhere outside of your wallet.
Bitcoin security is easy when you are proactive
Using a bitcoin mixer is all about being proactive. Instead of waiting for something to happen and then changing your practices (otherwise known as reacting), stay ahead of the curve and make the first move.
This way, you never have to know the frustration of losing access to your cryptocurrency because a hacker beat you to the punch. After all, these coins are yours, why should you let anyone waltz right into your wallet and take what they want?
That’s right, you shouldn’t – and using a bitcoin mixer is the best way to make sure it never happens.
Disclaimer: This article is not intended to provide financial advice or promote the use of Bitcoin and other cryptocurrencies. Its main purpose is to inform, explain, and educate. Readers must make their own decisions regarding the use of such services.